What Do Sellers Really Value in Selecting a Listing Agent?

Here's one of those age-old questions in our business:  What is it that Sellers really want--and value most--when they consider selecting an agent to list their house?  We've all had our varying experiences and, no doubt, been surprised on occasion when we thought we had a listing all sewed up, only to get that email or voice mail from the Seller letting us know they chose someone else!  Really?  Really?

While most of the successful agents in our business would probably say that it still comes down to how well we can "connect" with the prospective Seller--and that's clearly a huge aspect of winning in a competitive situation since no connection equals no client--there are a number of elements beyond that personal/professional link, and it's best to keep them in mind.  And also some things we maybe don't need to worry about all that much!

NAR did a recent survey of home sellers and asked them what was THE MOST IMPORTANT factor in their choice of a listing agent.  Here’s the goods:

         Reputation of Agent                                                                           35%

         Agent is honest and trustworthy                                                       18%

         Agent is a friend or family member                                                   15%

         Agent’s knowledge of the neighborhood                                           14%

         Agent’s association with a particular firm                                           5%

         Agent’s has a caring personality and is a good listener                       5%

         Agent’s commission                                                                                1%

A couple elements strike us right away:  Not unsurprisingly, the agent’s reputation as well as their perceived honesty and trustworthiness account for more than half of the respondents choice (53% between them) as the most important attribute.  Bottom line, that’s “connection” in a nutshell!

Next, comes our good old Sphere of Influence—that “friend or family member”—and we’d bet the words “referral” as well as “repeat client” probably apply there as well!  So, between your SOI and making a great connection, you can put yourself in a strong position to win the listing nearly 70% of the time!

And here are the interesting elements:  knowledge of the neighborhood is considered the primary criterion for choosing a listing agent only 14% of the time, so it’s still important—we probably won’t win a listing no matter how charming we are if we have to say “Gosh I don’t know” too many times—but not as crucial as it used to be back in the dark ages when only Realtors had access to the dark secrets of the details of homes on the market and those already sold. 

Then, at just 5% of sellers choosing it as their most important criteria, is the agent’s association with a particular firm.  We all choose our firm based on its support and its tools and its ambience and energy and its reputation in the market, but, as long as we “connect” with the prospective seller and show ourselves to be trustworthy and knowledgeable, 95% of those potential sellers really don’t care a whit about the logo on our business card.

And, most importantly, it turns out that only 1% of sellers think your commission is the most important element in their selection decision!  So, keep that in mind and focus on your ability to connect while leveraging your SOI—and of course impressing them with your leading edge knowledge and abilities by using your new tablet and going as paperless as possible—and you’ll be seeing your average commission rate increase and more money flowing into your business.  Talks about making more money per hour!

David M. Hassler

Director of Coaching